Sunday, January 18, 2009

People Behaving Rationally

It's always a pleasure to see people behaving rationally. The American military are meeting their recruitment goals once again. The NYTimes reports that this is a result of both a relative lull in violence in Iraq and a poor jobs market. People are reconsidering the military because it offers a steady paycheck and excellent benefits, two things not on offer many other places. Now both parties are better off: the military gets much-needed manpower and workers get good jobs.

As rational actors, people generally act in their own self-interests, and in turn they help others. As Adam Smith said in The Wealth of Nations:
It is not from the benevolence of the butcher, the brewer, or the baker, that we can expect our dinner, but from their regard to their own interest.


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